Final Results

9 April 2015

GREKA ENGINEERING & TECHNOLOGY LTD.

("Greka Engineering" or the "Company")

Final Results 2014

Greka Engineering & Technology Ltd. (AIM: GEL), the unconventional gas sector engineering and technology business with pipeline, gas compression and power generation assets in China, is pleased to announce its audited financial results for the year ended 31 December 2014.

OPERATIONAL HIGHLIGHTS

· Sales of 123 gas station dispensers in 2014, a 9.6% decrease on the 136 sold in 2013

· No sales of wellhead compressors in 2014 (2013: 3 sold)

· No sales of SCADA in 2014 (2013: 2 sold)

· 977,965 MCF (27.7 MCM) of gas for sale were processed in 2014, (2013: 1,038,263 MCF processed (29.4 MCM) , a 5.8% decrease

· Sales of 10,915,738 kwh of power in 2014, (2013: 10,714,823 kwh), a 2% increase

· 4.9 km of gas gathering pipeline constructed in 2014 resulting in 41.9 km of total pipeline at the end of 2014

· 3.8 km of power line constructed in 2014, a total of 71.8 km of power lines at the end of 2014

FINANCIAL HIGHLIGHTS

· Revenue increased by 41% to US$5.2m (2013:US$3.7m)

· Cash and bank deposits of US$2.6m at 31 December 2014 (2013: $3.5m)

CORPORATE HIGHLIGHTS

· The Group's customer base increased by 43 (2013: 30 new customers) to 150 customers in China at year end (2013: 107 customers). This represented a 40% increase in the customer base

· Three-year power sales contract with Jiaqin Agriculture, the Company's first unaffiliated power client

· Power Line Construction Agreement with CUCBM, a CNOOC subsidiary

· No lost time due to injury or accident in 2014

Randeep S. Grewal, Executive Chairman of Greka Engineering, commented:

"We are quite pleased with the first full year of independent operations for Greka Engineering & Technology. The Company continued to make progress on building additional infrastructure for its key client Green Dragon Gas Ltd while continuing to process stable gas flows through our existing facilities. Additional clients have been added in "for power off take" and an enhanced pricing regime with all clients resulted in improved revenues. We look forward to steady growth in all our business sectors in 2015 as the unconventional gas market in China continues to grow independently from global oil price volatility."

Contacts:

WH Ireland

Broker +44 113 394 6600

Tim Feather

Walbrook

Media & Investor Relations + 44 20 7933 8780

Paul Cornelius / Guy McDougall [email protected]

About Greka Engineering & Technology

Greka Engineering & Technology Ltd., (AIM; GEL) was demerged from Green Dragon Gas Ltd. (AIM; GDG) ("Green Dragon Gas") via a dividend in specie and was admitted to trading on AIM in September 2013.

Greka Engineering offers turnkey solutions to over 100 upstream, midstream and downstream gas suppliers. The Company's technologies include Compressed Natural Gas/Liquefied Natural Gas (CNG/LNG) compressor equipment, CNG retail dispenser equipment and CBM wellhead extraction technologies. The Company also supplies proprietary Integrated Circuit Card Point of Sale (ICC POS) and Supervisory Control and Data Acquisition (SCADA) software and hardware solutions for the remote management of transmission systems, power facilities, vehicle management and retail services.

In addition, the Company invests in, operates and maintains wholly owned assets for its customers in return for service contracts based on the volume management.

The Company has historically completed several Engineering, Procurement, Construction and Management (EPCM) contracts including the design, construction and management of gas gathering systems, a gas pipeline in Shanxi Province to the China West-East pipeline, the installation and commissioning of a 10MW gas-fired power facility in the Shanxi province and the construction of CNG retail stations.

Chairman's Statement

In 2014, Greka Engineering completed its first full-year operation as an independent quoted company on AIM following its demerger from Green Dragon Gas. The Company's performance improved from enhanced equipment utilization and customer expansion. Revenue increased 41% to US$5.2m and losses decreased to US$1.7m, a 12% reduction compared to the prior year.

High quality infrastructure assets (including coal bed methane field compressors, pipeline gathering systems and an Integrated Production Facility (IPF) form the core assets of the Group) provided reliable and increasing revenue for the Company. As highlighted in the interim report, the Company successfully renegotiated its gas gathering system usage, power sales and compression fees with its key client Green Dragon Gas. The renegotiated gas processing fee and power price provided for a 274% increase to gas process revenue over the previous year and power sales revenue increased by 185%.

The Company signed a three-year power sales contract with Jiaqin Agriculture which became our third client for power and the first unaffiliated client. Furthermore, we signed a Power Line Construction Agreement with CUCBM, a CNOOC subsidiary, under which we successfully built power lines connecting one of its valve groups to supply nine wells to our power grid. This initial valve group is to serve as a pilot to CUCBM on the benefits of connecting its remaining fourteen valve groups into our infrastructure. The pricing for power sales is consistent across all four clients.

In accordance with our strategy to be a technology leader within the unconventional gas market, product development continued. The Company made significant advances in the pipe network and power grid technology through the research and development of a micro casing pressure production pump. This pump can potentially increase gas production of a single gas well by over 20% compared to conventional technology and has been successfully deployed on three wells on a trial basis. We will evaluate launching the product on the basis of the performance during the coming year. Additionally, leveraging on the successful development of the LNG dispensers, the Company embarked on the development of C/LNG pump skids which provide mobility to an end user on its C/LNG dispensing capability. We expect to conclude on the market potential of this new product during the course of this year.

Looking forward to the coming year, we expect our continued growth to be diversified with increasing IPF utilization, rising power sales to all four clients, expanding power grid to CUCBM, reinitiated SCADA sales and stable dispenser sales within our existing China market.

Finally, I would like to thank the diligent management team that leads our hundred employees across a diversified business encompassing 24/7 infrastructure operations within the IPF, manufacturing products for gas distribution as well as continued technology development maintaining a leading edge within our niche unconventional gas market.

Randeep S. Grewal

Chairman

8 April, 2015

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

The following describes the nature and purpose of each reserve within owners' equity.

· Share capital: Amount subscribed for share capital at nominal value.

· Share premium: Amount subscribed for share capital in excess of nominal value, including capital contributions

· Foreign exchange reserve: Foreign exchange differences arising on translating the results, assets and liabilities of foreign operations into the reporting currency.

· Retained deficit: Cumulative net gains and losses recognized in profit or loss.

Consolidated Statement of Cash Flows

Abridged notes to the financial information for the year ended 31 December 2014

1. PRINCIPAL ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with IFRSs as adopted by the European Union, that are effective for accounting periods beginning on or after 1 January 2014. The principal accounting policies adopted in the preparation of the financial statements are set out in the Group's full annual report and accounts for the year ended 31 December 2014.

2. REVENUE AND SEGMENT INFORMATION

The Group determines its operating segments based on reports reviewed by the chief operating decision-makers ("CODMs") which are also used to make strategic decisions.

The Group reports its operations as two reportable segments: gas equipment sales and the provision of contract infrastructure services in PRC. The division of the engineering and technology operations into two reportable segments is reflective of how the CODMs manage the business.

The accounting policies of the reportable segments are the same as those described in the summary of principal accounting policies. We evaluate the performance of our operating segments based on revenues from external customers and segmental profits.

Year Ended 31 December 2014

As at 31 December 2014

Year Ended 31 December 2013

As at 31 December 2013

Gas equipment sales represent the net invoiced value of gasequipment sales provided to 73 (2013:63) customers for the year. Infrastructure services represent sales to wholly owned subsidiaries of the Green Dragon Gas groupand the Greka Drilling Limited group.

3. LOSSFROM OPERATIONS

Loss from continuing operations is stated after charging:

4. FINANCE INCOME / EXPENSES

5. LOSSPER SHARE

The calculation of the basic and diluted earnings per share attributable to the owners of the Company is based on the following data:

There were no potentially dilutive instruments in 2014 and 2013. The basic and diluted loss per share are equal as the Company has no dilutive instruments. There have been no shares or potentially dilutive instruments issued between year-end and the date these financial statements were approved.The 2013 comparative is calculated as if the shares legally issued during 2013 had been in issue since the start of that year.

6. TAXATION

The reasons for the difference between the actual tax charge for the years presented and the standard rate of corporation tax in the PRC, as the primary operating environment, applied to the loss for the years presented are as follows:

The Company is incorporated in the Cayman Islands and is not subject to income tax. The primary operating companies are incorporated in the PRC and are subject to 25% tax rates. The group has unrecognised losses of $1,274,075 (2013: $763,393) which are not recognised given uncertainties in future taxable profits.

7. ASSETS HELD FOR SALE / DISCONTINUED OPERATIONS

The strategy of Greka Engineering is to develop its engineering and technology operations. In order to focus on the delivery of this strategy, prior to the demerger from Green Dragon Gas Ltd, during 2012 one of the Company's subsidiaries agreed a proposal to sell its non-core transportation operations to subsidiaries being retained within the Green Dragon Gas Ltd group following the demerger. Subsequently, it entered a legal agreement with Green Dragon Gas Limited on 1 July 2013 to dispose of motor vehicles and equipment for $1,753,357 of cash consideration in line with the previously agreed proposals. Notwithstanding the period that has elapsed between meeting the requirements for classification as assets held for sale, the Group remains committed to the disposal and expects it completion in due course. The completion of the transaction is subject to obtaining necessary legislative approvals and those approvals are progressing.

The following are the totals for the major classes of assets relating to Greka Engineering's transportation operation at the end of the reporting period:

The profit on discontinued operations in the Consolidated Statement of Comprehensive Income can be analysed, as follows:

The Consolidated Statement of Cash Flows contains the following elements related to discontinuing operations:

The assets held for sale are classified within the transportation services segment in Note 2.

8. LOANS AND BORROWINGS

On 11 April 2012, GTIG, Greka Integrated Products, Henan Boao Trading Co Limited and Aowei International (H.K.) Co., Limited (Aowei HK) entered into a loan agreement, pursuant to which Henan Boao Trading Co Limited made available a loan facility in the amount of the RMB equivalent of US$4,000,000. The facility is fully drawn and is repayable on demand but is matched by a US$4,000,000 receivable.

Included within loans and borrowings is a bank loan of US$653,702 (2013: $656,000) which is secured by buildings and structures with a book value of US$1,197,330 (2013: US$1,265,000).

9. PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information for the years ended 31 December 2014 and 31 December 2013 set out in this announcement does not constitute the Group's (being Greka Engineering and its subsidiaries) statutory financial information but is extracted from the audited financial statements for those years. The auditors have reported on the full accounts for both periods and their reports were unqualified and did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports.

10. ANNUAL REPORT

The Company's Annual Report and copies of this announcement will be available in due course on the Company's website at www.grekaengineering.com and from the office of the Company's Nominated Adviser, Smith & Williamson Corporate Finance Limited at 25 Moorgate, London EC2R 6AY, United Kingdom.